Common use of Impenetrable Substances Clause in Contracts

Impenetrable Substances. If Company drills a farmout well to a depth shallower than the agreed upon Objective Depth and encounters impenetrables, including any formation which cannot be penetrated, or any adverse condition which cannot be overcome, by means considered reasonable and appropriate in the industry and at reasonable cost, Company will have the right to drill a substitute well in accordance with Subsection 5.3.2 above.

Appears in 2 contracts

Sources: Exploration Participation Agreement (Ridgewood Energy P Fund LLC), Exploration Participation Agreement (Ridgewood Energy U Fund LLC)